California Labor Code §2775 (codifying Dynamex Operations West, Inc. v. Superior Court (2018) and AB 5) classifies workers using the ABC test. For most security guard work, the practical effect is:
Explanation
Labor Code §2775 codifies the Dynamex ABC test for most California workers. Prong B — the work must be performed outside the usual course of the hiring entity's business — is the typical sticking point for PPOs, whose business is providing guards. As a result, most guards working for licensed PPOs must be classified as W-2 employees, not independent contractors. Misclassification exposes PPOs to wage-and-hour, payroll tax, workers' comp, and PAGA claims. Borello's multi-factor test (S.G. Borello & Sons v. DIR (1989) 48 Cal.3d 341) still applies to certain occupations exempted from §2775, but security guards are not on that exempt list.
Law Reference: Cal. Labor Code §2775 (codifying Dynamex/AB 5); S.G. Borello & Sons v. DIR (1989) 48 Cal.3d 341This topic, taught in full in the California Guard Card (BSIS Security Guard) guide. California Guard Card — Complete Study Guide (2026) — PDF + EPUB, $9.99 · 14-day refund →
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